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A bank wonders whether omitting the annual credit card fee for customers who charge at least...

A bank wonders whether omitting the annual credit card fee for customers who charge at least $3000 in a year would increase the amount charged on its credit card. The bank makes this offer to a random sample of 500 of its existing credit card customers. It then compares how much these customers charge this year with the amount that they charged last year. The mean increase is $565, and the standard deviation is $267.

a. Is there significant evidence at the 1% level that the mean amount charged increases under the no-fee offer? State H0 and Ha and carry out a t test.

b. Give a 95% confidence interval for the mean amount of the increase.

math   Statistics-And-Probability   
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